Air Products & Chemicals (APD) Company Report

Air Products is advancing its Gulf Coast Darrow (Louisiana) blue hydrogen project (750 MMcf/d capacity, 80% ammonia conversion) and expects to finalize ammonia offtake partnerships by mid-December 2025, targeting industrial-gas-typical returns.
The Neom green hydrogen/ammonia facility in Saudi Arabia remains on schedule for start-up in 2027, with its project debt to be deconsolidated from Air Products’ balance sheet in FY2027, reducing leverage.
Management reaffirms free cash flow neutrality to slightly positive in FY2026, assuming ~$4 billion of capital expenditures and monetization of non-strategic assets, and plans around $100 million in annual cost savings from workforce and productivity actions.
Core industrial gas markets are resilient but face near-term headwinds: muted U.S. growth, hyper-competitive Chinese supply, and European demand pressure; helium volumes are largely contracted under multi-year agreements, supporting pricing stability.

3 days ago

Transcript

Air Products outlines project updates and financial guidance at 2025 Citi conference

APD

New Projects/Investments

Guidance Update

Air Products expects to finalize the direction on its self-imposed end-of-year deadline for the Louisiana clean hydrogen/ammonia project within two weeks, having secured a minor air‐source permit and seeking an ammonia producer partner to operate the ammonia loop.
The Neom green hydrogen project remains on track for a 2027 start, with ammonia exports serving as interim offtake until European green hydrogen regulations are transposed (~2030); a green ammonia marketing plan is expected by 1H 2026.
The company maintains a cash flow neutral to positive outlook through 2028, backed by a $4 billion CapEx plan for 2026 (including Darrow investments) and the deconsolidation of Neom debt in 2027 to improve leverage.
Execution on other major projects (Edmonton, Rotterdam ICO 4/5) is under control with 40–50% of volumes contracted at Edmonton and ICO 5, full contraction at ICO 4, and a Rotterdam ammonia liquefier proceeding as a merchant venture.
Air Products delivered $100 million of cost savings in FY 2025 and targets an additional $100 million in FY 2026 through headcount reductions and productivity; the company is also deploying AI tools enterprise-wide to further drive efficiency.

3 days ago

Transcript

Air Products updates on major hydrogen projects and financial targets at Citi 2025 Basic Materials Conference

APD

New Projects/Investments

Guidance Update

Louisiana hydrogen project fundamentals remain sound; designed for 750 million cubic feet/day of H₂ (80% converted to ammonia), with partner agreements for the ammonia loop expected by year-end.
Neon green hydrogen project on track for 2027 start; exploits lower Saudi power costs via ammonia export to Europe, with green ammonia offtake markets to be clarified by H1 2026.
2026 financial outlook embeds approximately USD 4 billion of CapEx (including Darrow/Louisiana), targeting free cash flow neutrality to slight positivity through 2028; Neon deconsolidation in 2027 will reduce net debt and improve leverage metrics.
Cost reduction program: 6% of actions completed delivered USD 100 million in savings in FY 2025, with an additional USD 100 million of savings expected in FY 2026 as remaining actions are executed.
Core industrial gas markets are resilient but mixed: low growth in the U.S., robust electronics-driven demand in Asia, and pricing pressures in Europe due to oversupply.

3 days ago

Transcript

Air Products reports Q4 2025 earnings and 2026 guidance

APD

Earnings

Guidance Update

New Projects/Investments

Air Products delivered $12.03 EPS and a 23.7% operating margin in fiscal 2025, marking the 43rd consecutive year of dividend increases and returning $1.6 billion to shareholders.
For fiscal 2026, the company guides EPS of $12.85–$13.15 (7–9% growth) and Q1 EPS of $2.95–$3.10, with $4 billion in capital expenditures and continued focus on pricing, productivity, and helium headwinds.
Capital expenditures are expected to decline to ~$2.5 billion per year after 2026; there remains $2.5 billion of spend on underperforming projects (2026–2028), and new commitments to the Louisiana blue hydrogen project are paused pending off-take agreements.
Since 2022, the company has implemented 3,600 headcount reductions (≈16% of peak workforce), targeting $250 million in annual cost savings (≈$0.90 per share).
The NEOM green ammonia project is 90% complete, with renewable power commissioning by early 2026 and full ammonia production expected in 2027.

Nov 6, 2025, 2:00 PM

Transcript

Air Products provides Q4 2025 earnings call highlights

APD

Earnings

Guidance Update

New Projects/Investments

CEO Eduardo Menezes expects to deliver further updates on the key Gulf Coast project before the end of 2025, emphasizing a return to value creation for shareholders, customers, and employees.
The helium market has undergone structural shifts following the BLM’s exit, with major players building storage caverns; Air Products forecasts 2027 as the market trough before stabilization.
On the NEOM ammonia project, initial product sales will be as conventional ammonia, with green ammonia volumes expected to grow over time; specific 2027 EPS contributions remain under review.
Equity affiliate income saw a strong second half from the Mexican JV, with flat contributions projected for FY 2026 and a rebound at Jazan as interest rates decline.
The electronics segment will benefit in the near term from the ramp-up of the new Taiwan facility, which started operations this year.

Nov 6, 2025, 2:00 PM

Transcript

Air Products reports Q4 2025 results

APD

Earnings

Guidance Update

New Projects/Investments

In Q4 FY25, adjusted EPS of $3.39 (-5% YoY, +10% QoQ) and adjusted operating income of $812 MM (-4% YoY, +10% QoQ) with a 25.6% margin (-100 bp YoY, +110 bp QoQ); volume headwinds from LNG divestiture and helium were offset by favorable currency and productivity gains.
For FY25, sales totaled $12.0 B, adjusted EPS was $12.03 (-3% YoY), adjusted operating income was $2.858 B (-3% YoY), and adjusted ROC was 10.1% (-120 bp YoY); operating cash flow reached $3.3 B with $1.6 B returned in dividends.
FY26 guidance includes adjusted EPS of $12.85–$13.15 (+7–9% YoY), Q1 EPS of $2.95–$3.10 (+3–8% YoY), and capital expenditures of ~$4.0 B (-$1.0 B vs FY25).
The company exceeded its FY25 guidance midpoint, emphasizing pricing excellence, cost productivity, core industrial gases projects, and the rationalization of large energy transition initiatives such as NEOM Green Hydrogen and the pending Louisiana Blue project.

Nov 6, 2025, 2:00 PM

Presentation

Air Products reports Q4 and FY2025 results and FY2026 guidance

APD

Earnings

Guidance Update

New Projects/Investments

FY2025 EPS of $12.03 beat the midpoint of guidance; operating margin 23.7%, ROIC 10.1%; $1.6 billion returned to shareholders and 43rd consecutive dividend increase.
FY2026 EPS guidance of $12.85–$13.15 (+7%–9%) and Q1 EPS of $2.95–$3.10; CapEx expected at ~$4 billion for fiscal year 2026.
Since 2022, 3,600 headcount reductions (~~16% of peak workforce) are on track to deliver $250 million in annual cost savings (~~$0.90/share).
NEOM green ammonia project ~90% complete with full production by 2027; Louisiana blue hydrogen project pending uptake agreements and potential divestiture of CO₂ sequestration assets.

Nov 6, 2025, 2:00 PM

Transcript

Air Products reports fiscal 2025 Q4 and full-year results

APD

Earnings

Guidance Update

New Projects/Investments

Fiscal 2025 full-year GAAP loss per share of $1.74 and operating loss of $877 M; adjusted EPS of $12.03 and adjusted operating income of $2.9 B
Q4 FY25 GAAP EPS of $0.02 and operating income of $17 M; adjusted EPS of $3.39 and adjusted operating income of $812 M
Fiscal 2026 guidance: adjusted EPS of $12.85–$13.15, Q1 EPS of $2.95–$3.10, and capital expenditures of ~$4 B
Reinforced focus on core industrial gas projects and rationalized energy transition project portfolio

Nov 6, 2025, 12:44 PM

8-K

Air Products reports FY25 full-year and Q4 results

APD

Earnings

Guidance Update

Air Products reported fiscal 2025 GAAP loss per share of $1.74 and an operating loss of $877 million, reflecting $3.7 billion in pre-tax charges; on a non-GAAP basis, adjusted EPS of $12.03 and adjusted operating income of $2.9 billion exceeded the guidance midpoint.
In Q4 FY25, GAAP EPS was $0.02 with operating income of $17 million, while adjusted EPS of $3.39 and adjusted operating income of $812 million also surpassed the guidance midpoint.
Full-year sales were $12.0 billion, down 1% year-on-year, with Q4 sales of $3.2 billion, also down 1%.
The company expects fiscal 2026 adjusted EPS of $12.85–$13.15, Q1 adjusted EPS of $2.95–$3.10, and capital expenditures of approximately $4 billion.

Nov 6, 2025, 11:00 AM

Press Release

Air Products Issues Senior Notes Underwriting Agreements

APD

Debt Issuance

Air Products & Chemicals, Inc. has entered underwriting agreements for issuing senior notes in both U.S. and European markets, as reflected in recent 8-K filings.
The U.S. offering includes $600 million of 4.300% Senior Notes due 2028 and $500 million of 4.900% Senior Notes due 2032, with proceeds closing on June 11, 2025.
A Eurobond issuance of €500 million in 3.250% Notes due 2032 is scheduled to close on June 16, 2025, backed by legal opinions confirming the validity of the notes.

Jun 11, 2025, 12:00 AM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for Air Products & Chemicals.

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